Colts, QB Daniel Jones finalizing two-year, $88 million deal

Daniel Jones is in the Indianapolis Colts’ plans for the near future.

Jones has agreed to a two-year, $88 million deal that will keep the quarterback in Indianapolis through 2027, NFL Network Insiders Ian Rapoport and Tom Pelissero reported Wednesday. The deal comes after the Colts used the transition tag on Jones on March 3.

Jones is set to make $50 million on the first year of the deal, which is a $12.2 million increase from the transition tag he would have played on in 2026, per Rapoport and Pelissero. Jones also will earn $38 million in 2027, $10 million of which is guaranteed.

Jones’ new contract includes over $60 million fully guaranteed and is worth up to $100 million with incentives, per Rapoport and Pelissero.

As he recovers from a torn Achilles, Jones and his team have been negotiating an extension for some time, but were unable to beat the franchise tag deadline last week. They got one done with plenty of time to spare before July 15’s deadline for tagged players to work out long-term contracts.

“I’m fired up to be back and definitely grateful for the opportunity to be back and here with the Colts,” Jones told The Pat McAfee Show on Wednesday. “I wanted to be back. The transition tag, that whole process was interesting, but I always wanted to be here and had faith it would work out.”

Signed last offseason by the Colts as competition for 2023 first-rounder Anthony Richardson, who is currently seeking a fresh start via trade, Jones won the starting job and proceeded to play arguably the best football of a topsy-turvy career.

Jones threw for 3,101 yards, 19 touchdowns and eight interceptions while earning a career-best 68.0 completion percentage and led the NFL with a 52.0 success rate in 13 games. Jones’ mobility was also a stellar fit for Shane Steichen’s offense, as he rushed for five touchdowns. On top of his statistics, Jones’ toughness was apparent. He played with a broken fibula prior to suffering the torn Achilles in December of last year.

It’s next door to likely that Jones won’t be ready for the 2026 season opener, leaving second-year QB Riley Leonard as the possible Week 1 starter provided general manager Chris Ballard doesn’t bring on another arm.

However, Jones told McAfee on Wednesday that his goal is “be back by Week 1 and ready to go.”

“The left leg’s good, that’s all healed,” Jones said. “Working on this Achilles, making good progress with the rehab. It’s good. I’m fired up.”

When Jones was at his best last year, so too were the Colts, as they sprinted out to a 7-1 record, their offense was humming and they were viewed as Super Bowl contenders. They stumbled to the finish, though, failing to make the playoffs. While Jones’ injury likely played a part, his play did dip before he was injured. Case in point was a 27-20 loss to the Pittsburgh Steelers in Week 9 when he threw three interceptions.

Jones has exhibited phenomenal play in seasons past, namely his 2022 campaign -- his first with Brian Daboll as head coach of the New York Giants. He threw for a career-high 3,205 yards and earned a lucrative extension. Injuries, uneven play and a questionable roster around him added up to poor performances thereafter.

The Colts are hopeful a similar path won’t follow Jones, who needs to recover from a devastating injury and stack two solid seasons.

It’s not just a pivotal 2026 ahead for Jones -- regardless of how much he plays -- but one for Ballard and Steichen as the team is in win-now mode and aiming to reach the playoffs for the first time since 2020.

In 2025, Jones penned a career revival, if only for an abbreviated season. He’s got another comeback story to author now, but it’s clear Indianapolis has faith in him to pull it off.

By: Grant Gordon, Digital Content Editor